Global shift towards new multi-polar world economy: World Bank chief

SINGAPORE: The US may have cut discretionary spending in an effort to steer its economy clear of a recession Mr Zoellick said discretionary spending was not the core issue and added that tax reforms should be considered. He said: "Frankly, I think it is good that the US politics is moving in that direction - but the discretionary spending is not the core issue, issues such as social security and MediCare - the issue is not cutting them but reducing the flow of increase "And then for fundamental growth, I think people need to look at the tax reform issues - broadening the base - lowering the rates." While Mr Zoellick said that a double dip recession in the US and global economy is unlikely, he added that policy makers need to think longer term rather than looking at just short-term solutions. But for Asian economies making plans to combat issues such as inflation, this coul...